AMI Semiconductor redeems 35% of 10¾% notes

New York, Nov. 12 - AMI Semiconductor Inc. (B3) that it redeemed $70 million of its 10¾% senior subordinated notes due 2013, or 35% of the outstanding amount, on Nov. 1. Total cost to the company was $77.5 million, or 110.75% of the underlying principal. It additionally paid its holders accrued interest on the notes.

AMI's corporate parent, AMIS Holdings Inc., a Pocatello, Ida. -based semiconductor manufacturer, said in a 10-Q filing with the Securities and Exchange Commission that the repurchase of the bonds followed the completion by the company of an initial public offering of 25.145 million common shares at $20 per share on Sept. 26. It said that net proceeds from the offering were $471 million, which the company used, along with the borrowings under its new $125 million senior term loan, to redeem all of its outstanding shares of preferred stock for some $465.2 million and to repay in full its original senior term loan for some $39.9 million, in addition to the cost of redeeming the notes.

The company had issued $200 million of the notes in January. The redemption was carried out under the equity clawback provision allowing the company to redeem up to 35% of the outstanding notes using the proceeds from any equity offering during the first three years after the notes were issued, when they would otherwise not be eligible to be called.

Following the repayment, the company had total debt of $255 million.

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